Is Warner Music Group Corp. (WMG) Halal?

NASDAQ Communication Services United States $12.4B
✗ NOT HALAL
Confidence: 90/100
Warner Music Group Corp. (WMG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 31.7% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Warner Music Group Corp. operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 31.7%
/ 30%
3.7%
/ 30%
9.2%
/ 30%
4.12%
/ 5%
✗ NOT HALAL
DJIM 31.7%
/ 33%
3.7%
/ 33%
9.2%
/ 33%
4.12%
/ 5%
✓ HALAL
MSCI 46.9%
/ 33%
5.4%
/ 33%
13.6%
/ 33%
4.12%
/ 5%
✗ NOT HALAL
S&P 31.7%
/ 33%
3.7%
/ 33%
9.2%
/ 33%
4.12%
/ 5%
✓ HALAL
FTSE 46.9%
/ 33%
5.4%
/ 33%
13.6%
/ 50%
4.12%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
41.7
Forward: 13.5
EPS
$0.57
Dividend Yield
320.0%
Payout: 129.8%
P/B Ratio
17.2
EV/EBITDA
11.1
EV: $16.4B
Revenue
$6.7B
Growth: 10.4%
Beta
1.3
High volatility
Current Ratio
0.7

Profitability

Gross Margin 45.9%
Operating Margin 17.8%
Net Margin 4.4%
Return on Equity (ROE) 39.8%
Return on Assets (ROA) 7.1%

Cash Flow & Balance Sheet

Operating Cash Flow$678M
Free Cash Flow$344M
Total Debt$4.6B
Debt-to-Equity555.6
Current Ratio0.7
Total Assets$9.8B

Price & Trading

Last Close$24.21
50-Day MA$28.10
200-Day MA$30.11
Avg Volume2.3M
Beta1.3
52-Week Range
$23.34
$34.63

About Warner Music Group Corp. (WMG)

CEO
Mr. Robert Kyncl
Employees
5,500
Sector
Communication Services
Industry
Entertainment
Country
United States
Exchange
NASDAQ
Market Cap
$12.4B
Currency
USD

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The company is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials. It also owns and acquires rights to approximately two million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions, as well as administers the music and soundtracks of various third-party television and film producers and studios. In addition, the company conducts its operation primarily through a collection of record labels, such as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin' Records, and Warner Classics and Warner Records Nashville. Further, it markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. Its catalog includes songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, alternative, blues, gospel, and other Christian music. The company was founded in 1929 and is headquartered in New York, New York.

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Frequently Asked Questions

Is Warner Music Group Corp. (WMG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Warner Music Group Corp. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Warner Music Group Corp.'s debt ratio?

Warner Music Group Corp.'s debt ratio is 31.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 46.9%.

What are Warner Music Group Corp.'s key financial metrics?

Warner Music Group Corp. has a market capitalization of $12.4B, trailing P/E ratio of 41.7, and revenue of $6.7B. The company maintains a gross margin of 45.9% and a net margin of 4.4%. Return on equity stands at 39.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.